US Regulator Teams Up with Sports Leagues to Stop Insider Trading

The US government is cracking down on people who cheat when betting on sports outcomes.

The Commodity Futures Trading Commission (CFTC) - a government agency that oversees trading markets - is now talking with every major professional sports league in America. Their goal? To stop insider trading (using secret information to make money) in prediction markets (places where people bet on future events).

The CFTC has already signed a deal with Major League Baseball to share information. Chairman Mike Selig announced they're now in talks with the NFL, NBA, NHL, and other leagues. This is the first time a US regulator has formally partnered with sports organizations to monitor betting markets.

Why does this matter? Prediction markets like Kalshi and Polymarket let people bet on sports outcomes, elections, and other events. But there's a problem: people with inside information (like knowing a star player is injured before it's announced) could unfairly profit.

The CFTC is also fighting with several states about who controls these markets. Selig said they've already sued "about five or six states" that tried to block these betting platforms. The CFTC argues these are derivatives (financial contracts based on future events), not regular gambling, so federal law applies.

This move shows how seriously the government is taking the growth of prediction markets, especially as more Americans use them to bet on everything from sports games to political elections.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/policy/2026/05/12/the-cftc-is-in-talks-with-every-major-pro-sports-league-to-crack-down-on-insider-trading